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15 mars 2022
Publication series – 52 de 66 Publications
Renewable Energy Wrap-Up - United Kingdom
- Briefing
With our Corporate Energy @TW series, we aim to highlight current developments and issues in the renewable energy sector across different jurisdictions. Taylor Wessing’s international Energy & Infrastructure industry group has more than 50 experts across 16 offices. We have been active in corporate/M&A and financing in relation to renewable energy for more than 15 years and have extensive legal and commercial expertise and market knowledge. We are currently ranked fourth globally according to the number of renewable energy M&A deals in the Clean Energy League Tables 2021.
Question: What are the most important current developments in the field of renewable energy transactions and financing?
Answer: The UK was the first major economy to adopt a binding net zero target for 2050, with an interim goal of 78% less emissions compared to 1990 by 2035. During Q4 2021, the government announced that in order to achieve these goals the UK is aiming to decarbonise its power sector fully by 2035. This includes a massive roll out of renewable energy, including an increase of offshore wind capacity to 40 GW by 2030. 40 GW of offshore wind power is almost double of Europe’s entire current offshore wind capacity (currently around 25 GW), which would put the UK at a world-leading level. Whilst the decline in onshore technology costs ought to support the deployment of onshore wind technologies in the UK, planning policies in England & Wales have severely restricted further development of onshore wind projects. Onshore wind and solar were less expensive than traditional electricity sources due to, amongst other reasons, lower capital costs and technological progress.
The contract for difference (CfD) auctions remain the mechanism for providing public funding for capacity growth. The fourth and biggest ever auction round, which aims to secure 12 GW of electricity capacity, opened in December 2021 with £285 million a year funding for offshore wind, onshore wind and solar, tidal and floating offshore wind projects, amongst others. Offshore wind will be supported by £200 million funding per year, of which £24 million is being dedicated to floating offshore wind (find out more about floating foundations in our Q&A Floating Foundations for Offshore Wind Farms) and £20 million to new technologies. £10 million is allocated to established technologies such as onshore wind and solar PV. The results of the auction are expected to be announced in spring-summer 2022. The years in which successful projects must be commissioned have not yet been confirmed, but are likely to follow the delivery year of the third allocation round, i.e. after 2025.
The UK Government has recently announced that CfD auctions will be held annually from 2023 (in place of the current b-annual auctions).
Question: What market developments can be expected in 2022 and beyond?
Answer: The UK renewable energy market continues to attract investments (both domestic and foreign). Clean energy project finance amounted to $6.57 billion in H1 2021, placing the UK fifth in the global ranking, behind China, USA, Spain and Brazil. The majority (63%) of the UK’s total deal value was again dedicated to offshore wind projects, while Solar PV accounted for 12.2%, experiencing a very strong upward trend, with $802.29 million invested (+81% compared to H1 2020). We expect offshore wind, solar PV and battery storage to be then main areas of focus for project development and a continuing increase of corresponding transaction activity in these areas. To meet the ambitious goal to decarbonise the UK’s power sector fully by 2035, a significant ramp up of renewable energy generation is required. The energy crisis the UK is currently facing due to the high share of gas in the energy mix will further increase the demand for more renewable energy.
Corporate PPAs enabling companies to meet their emissions reduction goals and providing a hedge against volatile market prices support this tendency. PPAs are expected to drive utility-scale PV growth, providing a major upside potential in the short and medium term. As often, lengthy permitting processes hamper the development of solar, onshore and offshore wind. Grid availability can be an issue.
In October 2021, the UK government released a “Roadmap to Sustainable Investing”. Notably, this roadmap includes sustainable disclosure requirements (SDR) for UK companies and covers aspects of the UK Green Taxonomy. International ESG-related developments will increasingly drive renewable energy investments, in particular for institutional investors and debt funders. Further developments in the UK sustainable finance legislation will support this development.
Question: What was your personal “game changer” or “highlight” in the field of renewable energies in 2021?
Answer: The energy crisis the UK amongst other European countries is currently facing might be a turning point for the energy market. Due to increased demand along with lower gas imports, gas costs have increased by 500 per cent in less than a year and they may increase further. The UK's single-largest source of power generation is natural gas. Whilst we have seen significant strides in the development of renewable electricity generation, the replacement of gas for heating and generation remains a significant challenge. There is a long way to go to make technologies such as green hydrogen commercially viable at scale. However, we are seeing increasing interest here and are pleased to have supported clients making investments in this area.
Do you have any questions or are you interested in an (interdisciplinary) discussion with our Corporate Energy & Infrastructure team? We look forward to talking to you!
Dans cette série
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German-Dutch Treaty on Cross-Border Energy Projects
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Energy communities in Austria and the new Electricity Industry Act (ElWG)
15 septembre 2025
New amendment to the Energy Industry Act (EnWG) introduced in July and August 2025
8 septembre 2025
Clean Industrial Deal State Aid Framework (CISAF) – a new state aid framework for the green transformation of industry
8 septembre 2025
par Dr. Michael Brüggemann, Johannes Schaadt-Wambach, LL.M. (Prag)
Industrial electricity prices: initial assessment and opportunities for businesses
18 août 2025
par Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)
Regulatory Framework for Transmission System Operators in Germany
18 août 2025
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Court ruling on the effectiveness of availability guarantees for wind turbines
31 juillet 2025
New Legal Framework for the Commercial Use of Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU)
11 juillet 2025
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Are offshore wind converter platforms a bottleneck in the energy transition? New German government wants to create production capacities at German shipyards
17 juin 2025
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Speeding up the energy transition - the new German government’s plans for gas and steam power plants and its quest for the right technology for renewable energy
8 mai 2025
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Update - Change of government opens the door to carbon capture and storage and carbon capture and utilisation
17 avril 2025
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The special fund for infrastructure and climate protection - what is next?
10 avril 2025
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Changes to CBAM through Omnibus legislative package
10 avril 2025
The role of heat probes in the energy transition: Authorisation procedures and potential
26 mars 2025
CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG
26 mars 2025
par Dr. Markus Böhme, LL.M. (Nottingham), Dr. Christian Ertel
Will the new German government open the door for carbon capture and storage?
26 février 2025
par plusieurs auteurs
Waste heat from data centres - new reporting obligations under the EnEfG
6 février 2025
par plusieurs auteurs
Rabigh 2 Solar Independent Power Project (IPP)
11 décembre 2024
Oman and Belgium Sign Landmark MoU on Green Hydrogen Cooperation
11 décembre 2024
Decision day: Grid fee exemption in customer systems and energy price brake put to the test
28 novembre 2024
par Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
BGH: Balance sheet allocation of electricity withdrawals at higher voltage levels in the event of supplier failure - recommended action for grid operators
11 novembre 2024
Hydrogen core network - The Federal Network Agency’s strategy for the energy transition
11 novembre 2024
par plusieurs auteurs
Amendment to the Energy Industry Act: changes for energy supply companies and grid and system operators
18 septembre 2024
par Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
Standard Essential Patents: A new challenge for the IoT and smart meter world
10 septembre 2024
Land acquisition and data protection: The importance of the GDPR when project developers request owner data
18 juillet 2024
par Dr. Patrick Vincent Zurheide, LL.M. (Aberdeen), Dr. Julia Wulff
Municipalities to share profit in wind turbines and ground-mounted photovoltaic systems
11 juillet 2024
par plusieurs auteurs
Solar Package I - Overview of Changes to Ground-Mounted and Building-Mounted PV Systems
27 mai 2024
Mandatory special charge for open space photovoltaic systems in Brandenburg
21 février 2024
par plusieurs auteurs
A new era for wind energy investments in Hungary
Power Play: Renewable Energy Update
26 janvier 2024
Updating the National Hydrogen Strategy
6 novembre 2023
par Dr. Niels L. Lange, LL.M. (Stellenbosch), Dr. Janina Pochhammer
The new CO2 border adjustment mechanism (Carbon Border Adjustment Mechanism - “CBAM”) - first statutory reporting obligations set for January 2024
Power Play: Renewable Energy Update
3 novembre 2023
New IT security requirements for the energy sector
Power Play: Renewable Energy Update
1 septembre 2023
par Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Alexander Schmalenberger, LL.B.
Does monument protection hinder the expansion of renewable energies?
Power Play: Renewable Energy Update
16 août 2023
The amending law to strengthen digitisation in the urban land use planning process and the further expansion of renewable energies
Power Play: Renewable Energy Update
6 juillet 2023
Challenges for data center operators - The federal government’s draft bill for an energy efficiency act
Power Play: Renewable Energy Update
12 avril 2023
par plusieurs auteurs
The Energy Charter Treaty in the Light of the Electricity Price Brake: An opportunity for investors to litigate?
27 janvier 2023
Ordinance for Determining Critical Infrastructures (KritisV): Renewable energy plants as critical infrastructure and requirements for IT protection
Power Play: Renewable Energy Update
12 juillet 2022
par Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Dr. Markus Böhme, LL.M. (Nottingham)
Liquefied Natural Gas Projects in Germany: The LNG Acceleration Act
Q&A series: Energy & Infrastructure
10 juin 2022
Participation of local municipalities in the context of wind and photovoltaic projects
Power Play: Renewable Energy Update
5 mai 2022
Renewable Energy Wrap-Up – France
Power Play: Renewable Energy Update
27 avril 2022
Renewable Energy Wrap-Up - United Kingdom
Power Play: Renewable Energy Update
15 mars 2022
Building energy performance: the revised Energy Performance of Buildings Directive
Power Play: Renewable Energy Update
14 février 2022
Fit for 55 – Hydrogen and the Reform of the European Gas Market
Power Play: Renewable Energy Update
11 janvier 2022
Renewable Energy Wrap-Up – Netherlands
Power Play: Renewable Energy Update
2 décembre 2021
Renewable Energy Wrap-Up – Poland
Power Play: Renewable Energy Update
21 septembre 2021
par Olav Nemling
Renewable Energy Wrap-Up – Austria
Power Play: Renewable Energy Update
18 août 2021
Renewable Energy Wrap-Up - Germany
Power Play: Renewable Energy Update
12 juillet 2021
par Carsten Bartholl
Floating Foundations for Offshore Wind Farms
Power Play: Renewable Energy Update
8 juin 2021
Species protection exemption: Significance for wind energy
Power Play: Renewable Energy Update
25 mai 2021
Power-to-Hydrogen
Power Play: Renewable Energy Update
6 avril 2021
Focus PV – Floating Solar and Agrivoltaics
Power Play: Renewable Energy Update
23 mars 2021
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